HomeMy WebLinkAbout2007 06 25 Regular 601 Audit Selection Committe; RFP for Audit Services; Contract for Audit Services
COMMISSION AGENDA
ITEM 601
CONSENT
INFORMATIONAL
PUBLIC HEARING
REGULAR X
Meeting
MGR jL/!DEPT 1V\/J
Authorization
June 25, 2007
REQUEST: To have the Commission authorize:
. the formation of a three-member Audit Selection Committee to include
one City Commissioner,
. the City Manager to issue an RFP (Request For Proposal) for Audit
Services in compliance with the Competitive Auditor Selection
Procedures set forth in Florida Statutes Section 218.391.
. the City Manager to negotiate a contract for Audit Services for review
and approval by the Commission.
PURPOSE: To authorize the formation of an Audit Selection Committee and to authorize the
City Manager to issue an RFP for audit services and negotiate a contract for
review and approval by the City Commission.
CONSIDERATIONS:
. Pursuant to Section 218.39(1)(b), Florida Statutes (FS), a municipality with revenues or
the total of expenditures and expenses in excess of $250,000 is required to have an annual
audit of its accounts and records by an independent certified public accountant.
. Section 4.12 of the City of Winter Springs Charter requires that the City designate an
accounting firm annually or for a period not exceeding three years provided that the
designation for any particular fiscal year shall be made no later than six months after the
beginning ofthe fiscal year.
. The City must designate an accounting firm by March 31, 2007 for the FY 07 audit. Due
to other required commitments within the Finance Department this process was delayed.
. Pursuant to Section 218.391 (2) and (3), Florida Statutes (FS), the governing body of a
municipality shall establish an "auditor selection committee" and "competitive auditor
selection procedures."
Regular Agenda Item 60 1
June 25, 2007
Page 2 of3
. The City's current three-year audit contract with McDirmit Davis and Company, LLC has
expired and FS 218.391 does not allow the City to extend the contract unless there are
renewal provisions clearly stated in the contract. If there are no provisions for renewal,
the City must adhere to the auditor selection process described in this agenda item.
FUNDING:
An audit fee of$37,500 is currently budgeted in the General Fund divisions 1300 and 1360. The
Fiscal Year 2006 audit fee was $30,700 with no single audit required that year.
RECOMMENDATION:
The Finance Department recommends the:
1. Formation of a three-member Audit Selection Committee comprised of the City Manager (or
his designee), a City Commissioner (selected by the City Commission) and the Finance
Director.
2. Issuance of an RFP.
3. City Manager negotiate a contract, subject to Commission approval, for Audit Services based
on the Audit Selection Committee recommendation.
IMPLEMENTATION:
Monday, June 25, 2007 (Commission meeting) Finance Director gains Commission
Authorization for RFP and City Commission
selects a City Commissioner to serve on the
Audit Selection Committee.
Tuesday, June 26, 2007 Finance Director arranges for general ad in
the Orlando Sentinel newspaper, places RFP
on Demand Star, and sends out RFPs to those
firms currently doing audits for the local cities
in Seminole County.
Friday, July 20,2007 Proposals due to City from audit firms.
Week of July 23,2007 Committee members independently review
proposals and prepare rankings.
Monday, July 30, 2007 Committee members come together to review
the results of the members' independent review
of the proposals, and select five firms to make
oral presentations to the committee.
Tuesday, July 31, 2007 Finance Director schedules oral presentations.
Regular Agenda Item 60 I
June 25, 2007
Page 3 of3
Monday, August 6, 2007 Auditors give oral presentations to Committee
members.
Monday, August 6, 2007 Committee selects and ranks three of the five
presenting firms to negotiate with.
Tuesday, August 7, 2007 City Manager begins contract negotiations,
includingfee, with the #1 rankedfirm. If
unable to reach agreement, negotiations with
the #1 rankedfirm are terminated and
negotiations with the #2 firm commence and so
forth. If negotiations fail with the first three
firms, the committee is free to begin
negotiations with the remaining firms in
rankinf; order.
Monday, August 27, 2007 (Commission City Manager makes recommendation to the
meeting day) Commission and gains approval to sign
contract for audit services.
ATTACHMENTS:
Florida Statute Section 218.391 Auditor Selection Procedures
Florida Statute Section 218.39 Annual Financial Audit Report
Section 4.12 of the City Charter "Independent Audits"
Draft RFP
COMMISSION ACTION:
Statutes & Constitution :View Statutes :->20Q6->Ch0218->Section 391 : Online Sunshine
Page 1 of2
Select Year: 2006 l~~J
The 2006 Florida Statutes
Title XIV
TAXATION AND
FINANCE
Chapter 218
FINANCIAL MATTERS PERTAINING TO POLITICAL
SUBDIVISIONS
View Entire
Chapter
218.391 Auditor selection procedures.--
(1) Each local governmental entity, district school board, charter school, or charter technical career center, prior to
entering into a written contract pursuant to subsection (7), except as provided in subsection (8), shall use auditor
selection procedures when selecting an auditor to conduct the annual financial audit required in s. 218.39.
(2) The governing body of a charter county, municipality, special district, district school board, charter school, or
charter technical career center shall establish an audit committee. Each noncharter county shall establish an audit
committee that, at a minimum, shall consist of each of the county officers elected pursuant to s. 1 (d), Art. VIII of the
State Constitution, or a designee, and one member of the board of county commissioners or its designee. The primary
purpose of the audit committee is to assist the governing body in selecting an auditor to conduct the annual financial
audit required in s. 218.39; however, the audit committee may serve other audit oversight purposes as determined by
the entity's governing body. The public shall not be excluded from the proceedings under this section.
(3) The audit committee shall:
(a) Establish factors to use for the evaluation of audit services to be provided by a certified public accounting firm duly
licensed under chapter 473 and qualified to conduct audits in accordance with government auditing standards as
adopted by the Florida Board of Accountancy. Such factors shall include, but are not limited to, ability of personnel,
experience, ability to furnish the required services, and such other factors as may be determined by the committee to
be applicable to its particular requirements.
(b) Publicly announce requests for proposals. Public announcements must include, at a minimum, a brief description of
the audit and indicate how interested firms can apply for consideration.
(c) Provide interested firms with a request for proposal. The request for proposal shall include information on how
proposals are to be evaluated and such other information the committee determines is necessary for the firm to
prepare a proposal.
(d) Evaluate proposals provided by qualified firms. If compensation is one of the factors established pursuant to
paragraph (a), it shall not be the sole or predominant factor used to evaluate proposals.
(e) Rank and recommend in order of preference no fewer than three firms deemed to be the most highly qualified to
perform the required services after considering the factors established pursuant to paragraph (a). If fewer than three
firms respond to the request for proposal, the committee shall recommend such firms as it deems to be the most highly
qualified.
(4) The governing body shall inquire of qualified firms as to the basis of compensation, select one of the firms
recommended by the audit committee, and negotiate a contract, using one of the following methods:
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(a) If compensation is not one of the factors established pursuant to paragraph (3)(a) and not used to evaluate firms
pursuant to paragraph (3)(e), the governing body shall negotiate a contract with the firm ranked first. If the governing
body is unable to negotiate a satisfactory contract with that firm, negotiations with that firm shall be formally
terminated, and the governing body shall then undertake negotiations with the second-ranked firm. Failing accord with
the second-ranked firm, negotiations shall then be terminated with that firm and undertaken with the third-ranked
firm. Negotiations with the other ranked firms shall be undertaken in the same manner. The governing body, in
negotiating with firms, may reopen formal negotiations with anyone of the three top-ranked firms, but it may not
negotiate with more than one firm at a time.
(b) If compensation is one of the factors established pursuant to paragraph (3)(a) and used in the evaluation of
proposals pursuant to paragraph (3)(d), the governing body shall select the highest-ranked qualified firm or must
document in its public records the reason for not selecting the highest-ranked qualified firm.
(c) The governing body may select a firm recommended by the audit committee and negotiate a contract with one of
the recommended firms using an appropriate alternative negotiation method for which compensation is not the sole or
predominant factor used to select the firm.
(d) In negotiations with firms under this section, the governing body may allow a designee to conduct negotiations on
its behalf.
(5) The method used by the governing body to select a firm recommended by the audit committee and negotiate a
contract with such firm must ensure that the agreed-upon compensation is reasonable to satisfy the requirements of s.
218.32 and the needs of the governing body.
(6) If the governing body is unable to negotiate a satisfactory contract with any of the recommended firms, the
committee shall recommend additional firms, and negotiations shall continue in accordance with this section until an
agreement is reached.
(7) Every procurement of audit services shall be evidenced by a written contract embodying all provisions and
conditions of the procurement of such services. For purposes of this section, an engagement letter signed and executed
by both parties shall constitute a written contract. The written contract shall, at a minimum, include the following:
(a) A provision specifying the services to be provided and fees or other compensation for such services.
(b) A provision requiring that invoices for fees or other compensation be submitted in sufficient detail to demonstrate
compliance with the terms of the contract.
(c) A provision specifying the contract period, including renewals, and conditions under which the contract may be
terminated or renewed.
(8) Written contracts entered into pursuant to subsection (7) may be renewed. Such renewals may be done without the
use of the auditor selection procedures provided in this section. Renewal of a contract shall be in writing.
History.--s. 65, ch. 2001-266; s. 1, ch. 2005-32.
Copyright @ 1995-2006 The Florida Legislature. Privacy Statement. Contact Us
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(3) No violation of this section shall affect the validity of the bond issue.
History.--s. 2, ch. 80-98; s. 3, ch. 82-195.
218.39 Annual financial audit reports.--
(1) If, by the first day in any fiscal year, a local governmental entity, district school board, charter school, or charter
technical career center has not been notified that a financial audit for that fiscal year will be performed by the Auditor
General, each of the following entities shall have an annual financial audit of its accounts and records completed within
12 months after the end of its fiscal year by an independent certified public accountant retained by it and paid from its
public funds:
(a) Each county.
(b) Any municipality with revenues or the total of expenditures and expenses in excess of $250,000.
(c) Any special district with revenues or the total of expenditures and expenses in excess of $100,000.
(d) Each district school board.
(e) Each charter school established under s. 1002.33.
(f) Each charter technical center established under s. 1002.34.
(g) Each municipality with revenues or the total of expenditures and expenses between $100,000 and $250,000 that has
not been subject to a financial audit pursuant to this subsection for the 2 preceding fiscal years.
(h) Each special district with revenues or the total of expenditures and expenses between $50,000 and $100,000 that has
not been subject to a financial audit pursuant to this subsection for the 2 preceding fiscal years.
(2) The county audit report shall be a single document that includes a financial audit of the county as a whole and, for
each county agency other than a board of county commissioners, an audit of its financial accounts and records, including
reports on compliance and internal control, management letters, and financial statements as required by rules adopted by
the Auditor General. In addition to such requirements, if a board of county commissioners elects to have a separate audit
of its financial accounts and records in the manner required by rules adopted by the Auditor General for other county
agencies, such separate audit shall be included in the county audit report.
(3)(a) A dependent special district may make provision for an annual financial audit by being included within the audit of
another local governmental entity upon which it is dependent. An independent special district may not make provision for
an annual financial audit by being included within the audit of another local governmental entity.
(b) A special district that is a component unit, as defined by generally accepted accounting principles, of a local
governmental entity shall provide the local governmental entity, within a reasonable time period as established by the
local governmental entity, with financial information necessary to comply with this section. The failure of a component
unit to provide this financial information must be noted in the annual financial audit report of the local governmental
entity.
(4) A management letter shall be prepared and included as a part of each financial audit report.
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(5) At the conclusion of the audit, the auditor shall discuss with the chair of each local governmental entity or the chair's
designee, or with the elected official of each county agency or with the elected official's designee, or with the chair of
the district school board or the chair's designee, or with the chair of the board of the charter school or the chair's
designee, or with the chair of the charter technical career center or the chair's designee, as appropriate, all of the
auditor's comments that will be included in the audit report. If the officer is not available to discuss the auditor's
comments, their discussion is presumed when the comments are delivered in writing to his or her office. The auditor shall
notify each member of the governing body of a local governmental entity, district school board, or charter school for
which deteriorating financial conditions exist that may cause a condition described in s. 218.503(1) to occur if actions are
not taken to address such conditions.
(6) The officer's written statement of explanation or rebuttal concerning the auditor's findings, including corrective
action to be taken, must be filed with the governing body of the local governmental entity, district school board, charter
school, or charter technical career center within 30 days after the delivery of the auditor's findings.
(7) The predecessor auditor of a district school board shall provide the Auditor General access to the prior year's working
papers in accordance with the Statements on Auditing Standards, including documentation of planning, internal control,
audit results, and other matters of continuing accounting and auditing significance, such as the working paper analysis of
balance sheet accounts and those relating to contingencies.
(8) All audits conducted in accordance with this section must be conducted in accordance with the rules of the Auditor
General promulgated pursuant to s. 11.45. All audit reports and the officer's written statement of explanation or rebuttal
must be submitted to the Auditor General within 45 days after delivery of the audit report to the entity's governing body,
but no later than 12 months after the end of the fiscal year.
(9) Each charter school and charter technical career center must file a copy of its audit report with the sponsoring entity;
the local district school board, if not the sponsoring entity; the Auditor General; and with the Department of Education.
(10) This section does not apply to housing authorities created under chapter 421.
(11) Notwithstanding the provisions of any local law, the provisions of this section shall govern.
History.--s. 65, ch. 2001-266; s. 924, ch. 2002-387; s. 28, ch. 2004-305; s. 2, ch. 2006-190.
218.391 Auditor selection procedures.--
(1) Each local governmental entity, district school board, charter school, or charter technical career center, prior to
entering into a written contract pursuant to subsection (7), except as provided in subsection (8), shall use auditor
selection procedures when selecting an auditor to conduct the annual financial audit required in s. 218.39.
(2) The governing body of a charter county, municipality, special district, district school board, charter school, or charter
technical career center shall establish an audit committee. Each noncharter county shall establish an audit committee
that, at a minimum, shall consist of each of the county officers elected pursuant to s. 1 (d), Art. VIII of the State
Constitution, or a designee, and one member of the board of county commissioners or its designee. The primary purpose
of the audit committee is to assist the governing body in selecting an auditor to conduct the annual financial audit
required in s. 218.39; however, the audit committee may serve other audit oversight purposes as determined by the
entity's governing body. The public shall not be excluded from the proceedings under this section.
(3) The audit committee shall:
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(a) Establish factors to use for the evaluation of audit services to be provided by a certified public accounting firm duly
licensed under chapter 473 and qualified to conduct audits in accordance with government auditing standards as adopted
by the Florida Board of Accountancy. Such factors shall include, but are not limited to, ability of personnel, experience,
ability to furnish the required services, and such other factors as may be determined by the committee to be applicable
to its particular requirements.
(b) Publicly announce requests for proposals. Public announcements must include, at a minimum, a brief description of
the audit and indicate how interested firms can apply for consideration.
(c) Provide interested firms with a request for proposal. The request for proposal shall include information on how
proposals are to be evaluated and such other information the committee determines is necessary for the firm to prepare a
proposal.
(d) Evaluate proposals provided by qualified firms. If compensation is one of the factors established pursuant to
paragraph (a), it shall not be the sole or predominant factor used to evaluate proposals.
(e) Rank and recommend in order of preference no fewer than three firms deemed to be the most highly qualified to
perform the required services after considering the factors established pursuant to paragraph (a). If fewer than three
firms respond to the request for proposal, the committee shall recommend such firms as it deems to be the most highly
qualified.
(4) The governing body shall inquire of qualified firms as to the basis of compensation, select one of the firms
recommended by the audit committee, and negotiate a contract, using one of the following methods:
(a) If compensation is not one of the factors established pursuant to paragraph (3)(a) and not used to evaluate firms
pursuant to paragraph (3)(e), the governing body shall negotiate a contract with the firm ranked first. If the governing
body is unable to negotiate a satisfactory contract with that firm, negotiations with that firm shall be formally
terminated, and the governing body shall then undertake negotiations with the second-ranked firm. Failing accord with
the second-ranked firm, negotiations shall then be terminated with that firm and undertaken with the third-ranked firm.
Negotiations with the other ranked firms shall be undertaken in the same manner. The governing body, in negotiating with
firms, may reopen formal negotiations with anyone of the three top-ranked firms, but it may not negotiate with more
than one firm at a time.
(b) If compensation is one of the factors established pursuant to paragraph (3)(a) and used in the evaluation of proposals
pursuant to paragraph (3)(d), the governing body shall select the highest-ranked qualified firm or must document in its
public records the reason for not selecting the highest-ranked qualified firm.
(c) The governing body may select a firm recommended by the audit committee and negotiate a contract with one of the
recommended firms using an appropriate alternative negotiation method for which compensation is not the sole or
predominant factor used to seleCt the firm.
(d) In negotiations with firms under this section, the governing body may allow a designee to conduct negotiations on its
behalf.
(5) The method used by the governing body to select a firm recommended by the audit committee and negotiate a
contract with such firm must ensure that the agreed-upon compensation is reasonable to satisfy the requirements of s.
218.39 and the needs of the governing body.
(6) If the governing body is unable to negotiate a satisfactory contract with any of the recommended firms, the
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committee shall recommend additional firms, and negotiations shall continue in accordance with this section until an
agreement is reached.
(7) Every procurement of audit services shall be evidenced by a written contract embodying all provisions and conditions
of the procurement of such services. For purposes of this section, an engagement letter signed and executed by both
parties shall constitute a written contract. The written contract shall, at a minimum, include the following:
(a) A provision specifying the services to be provided and fees or other compensation for such services.
(b) A provision requiring that invoices for fees or other compensation be submitted in sufficient detail to demonstrate
compliance with the terms of the contract.
(c) A provision specifying the contract period, including renewals, and conditions under which the contract may be
terminated or renewed.
(8) Written contracts entered into pursuant to subsection (7) may be renewed. Such renewals may be done without the
use of the auditor selection procedures provided in this section. Renewal of a contract shall be in writing.
History.--s. 65, ch. 2001-266; s. 1, ch. 2005-32.
PART IV
INVESTMENT OF LOCAL GOVERNMENT
SURPLUS FUNDS
218.40 Short title.
218.401 Purpose.
218.403 Definitions.
218.405 Local Government Surplus Funds Trust Fund; creation.
218.407 Local government investment authority.
218.409 Administration of the trust fund.
218.411 Authorization for state technical and advisory assistance.
218.412 Rulemaking authority.
218.415 Local government investment policies.
218.40 Short title.--This part shall be known, and may be cited, as the "Investment of Local Government Surplus Funds
Act."
History.--s. 1, ch. 77-394.
218.401 Purpose.--It is the intent of this part to promote, through state assistance, the maximization of net interest
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~ 4.08
WINTER SPRINGS CODE
authorized by law or forfeiture of his office, or in
the event no one is elected to the office of mayor or
. commission member.
(b) Forfeiture of office. A commissioner or mayor
shall forfeit his office if he:
(1) Lacks at any time during his term of office
any qualifications prescribed by this Char-
ter or by law; or
(2) Knowingly and willfully violates anyex-
press prohibition of this Charter; or
(3) Is convicted of a felony; or
(4) Fails to attend three (3) consecutive reg~
ular meetings of the commission without
being duly excused by the commission.
(c) Filling of vacancies. A vacancy in a commis-
sion member's seat shall be filled until the next
regular election to be held for the office of the
commissioner from that seat by a msjority vote of
all its remaining members.
Section 4.09. Judge of qualifications.
The commission shall be the judge of the elec-
tion and qualifications of its members and of the
grounds of forfeiture of their office and for that
purpose shall have power to subpoena witnesses,
administer oaths and require production of evi-
dence. A member charged with conduct constitut-
ing grounds for forfeiture of his office shall be so
notified by certified mail and shall be entitled to a
public hearing on demand, and notice of such
hearing shall be published in one or more news-
papers of a general circulation in the city at least
one week in advance of the hearing. Decisions
made by the commission under this section shall
be subject to review by the courts.
Section 4.10. City clerk.
(a) The city commission, after receiving a nom-
ination from either the mayor or a commission
member(s) shall, by a vote of not less than four (4)
commission members, appoint an officer of the
city who shall have the title of city clerk. The city
clerk shall give notice of commission meetings to
its members and the public, keep the journal ofits
Supp. No.2
proceedings and perform such other duties as are
provided by tbis Charter, by the commission or by
law.
(b) The city clerk may be removed by a vote of
not less than four (4) commission members.
Section 4.11. Investigations.
The commission may make investigations into
the affairs of the city and the conduct of any city
department, office or agency and fl?r this purpose
may subpoena witnesses, administer oaths, take
testimony and require the production of evidence.
Any person who fails or refuses to obey a lawful
order issued in the exercise of these powers by the
commission shall be guilty of a misdemeanor and
punishable by a fine of not more than five hun-
dred dollars ($500.00) or by imprisonment for not
more than ninety (90) days or both.
Section 4.12. Independent audits.
The commission shall provide for an indepen-
dent audit of all city accounts and may provide for
such more frequent audits as it deems necessary.
Such audits shall be. made by a certified public
accountant or firm of accountants who have no
personal interest, direct or indirect in the fiscal
affairs of the city government or any ofits officers.
The commission may designate such accountant
or firm annually or for a period not exceeding
three (3) years provided that the designation for
any particular fiscal year shall be made no later
than six (6) months after the beginning of such
fiscal year. If the state makes such an audit the
commission may accept it as satisfying the re-
quirement of this section.
Section 4.18. Procedure.
(a) Meetings. The commission shall meet reg-
ularly at least once every month at such times
and places as the commission may prescribe by
rule. Special meetings shall be held on the call of
the mayor or three (3) or more members and
whenever practicable, upon no less than twelve
(12) hours' notice to each member. All meetings
shall be public.
6
REQUEST FOR PROPOSAL. RFP # 006/07/MG . AUDIT SERVICES
The City of Winter Springs, Florida invites Independent Certified Public Accountants,
who are licensed to practice in the State of Florida, to submit proposals for the
performance of an examination of Winter Springs' financial statements. The purpose of
the examination is to express an opinion on the fairness with which the financial
statements present the City's financial position, changes in financial position and cash
flow and budgetary comparisons for major funds in conformity with generally accepted
governmental accounting principles, and to determine whether operations were
conducted in accordance with legal and regulatory requirements.
A. General Information
1. The City will contract for the annual audit for fiscal years ending September 30,
2007,2008 and 2009 with the option of three one-year renewals.
2. Winter Springs, Florida is a City Commission/City Manager form of municipal
government. The City is primarily a retail, office and residential area with a
population of approximately 34,600. The City employs approximately 292 full-
time employees (and 12.19 part-time equivalents) and administers a combined
budget of $62,000,000.
3. Copies of the City's Annual Financial Report for fiscal year ended September 30,
2006, which included an unqualified audit opinion, can be found on the City's
website at:
www .winterspringsfl.org/EN/main/documents/forms_publications/finance_
budgetlcafr2006.html, and the 2007 Annual Budget at:
www .winterspringsfl.org/EN/main/documents/forms_publications/finance_
budgetlfi nal budget2007. htm.
4. The City's accounting system is substantially fully automated. The City's
mainframe computer is run on a UNIX platform but will be converting to a
Windows/SOL platform in the near future. All Finance Department personnel
have connection via personal computers. General Ledger, Fixed Assets,
Purchasing, Cash Receipts, and Utility Billing systems are fully automated.
Budgets are initially recorded in the automated accounting system, and
amendments and transfers are subsequently documented within the system.
5. Audits for the fiscal years ending September 30, 2000 - 2006 have been
performed by McDirmit Davis and Company, LLC of Orlando, Florida.
6. The City has no internal audit department. Finance personnel working on the
audit includes the Finance Director, City Controller, Management and Budget
Analyst, Revenue Manager, Utility Billing Manager and two staff accountants.
Finance personnel are committed to furnishing documents and preparing audit
work schedules and being available to assist with the preparation of any
additional information needed. Financial statements will be prepared by the City.
The Accounting staff will provide the following statements and schedules for the
auditor:
Bank Confirmations
Investment Confirmations
Revenue Confirmations
Debt Compliance Confirmations
Legal Confirmations
Compensated Absence Schedules
Accrued Liabilities Schedule
Receivable Schedules
Bank Reconciliation
Pension Investment Statements and Schedules
Investment Statements
Investments & Demand Accounts Schedule
Pooled Cash Summary, with Investments apportioned calculation
Accounts Payable Schedules
Encumbrance Schedule
Interfund Account Schedules, including interfund transfers
Contracts and Retainage Payable Schedule
Fixed Asset Schedules, including CIP Schedules and Contributed
Capital Schedules
Long-Term Debt Schedules
Designated/Reserve Fund Equity Schedules
Various Revenue and Expense Schedules
Due TolDue From Schedules
Inventory Schedules
Prepaid costs Schedules
Trial balances for each fund
Copy of current Budget document and Budget Amendments
Management's Discussion and Analysis
Basic Financial Statements, including Notes
Required Supplementary Information
Combining Major Fund and Non-major Fund Statements
Statistical Section
State Banking & Finance Report
Other schedules may be added and others may be deleted based on the pre-
audit planning conference.
7. The City is a recipient of various grants, none of which are anticipated to be a
major program for the fiscal year ending September 30,2007.
8. The entity to be audited includes the following fund types:
General Fund
Special Revenue Funds (21)
Debt Service Funds (7)
Capital Projects Funds (9)
Enterprise Funds (3)
Fiduciary Fund (1)
The City has no component units.
2
9. The City has received the Government Finance Officers Associations Certificate
of Achievement for Excellence in Financial Reporting since 2000.
10. The City began implementation of GASB 34 with FY 2002.
B. Performance Specifications:
1. To be eligible to qualify as an external auditor, the following minimum
requirements must be met:
a) The firm must be established as a legal entity and be licensed in the State of
Florida. The principals of the firm must have performed continuous auditing
services to local governments for a minimum of five (5) years.
b) The firm must meet the independence and education requirements of the
Government Auditing Standards issued by the Comptroller General of the
United States.
c) The firm must have no record of sub-standard audit work.
d) The firm must be a member of the American Institute of Certified Public
Accountants, the Florida Institute of Certified Public Accountants, and the
Government Finance Officers Association.
e) All individuals who will be working on the auditmust have at least 24 hours of
governmental accounting and auditing CPE.
2. The audit shall be performed in compliance with the following as they exist or as
each may be subsequently amended:
a) Generally Accepted Auditing Standards.
b) Governmental Auditing Standards issued by the Comptroller General of the
United States.
c) Rules adopted by Auditor General for form and content of local governmental
unit audits, Chapter 10.550.
d) Audits of State and Local Governmental Units (AICPA Audit Guide Revised).
e) Single Audit Act of 1984 and OMB Circular A-133.
3. The audit shall be a financial audit as defined in Sec. 11.45(1) (c), Florida
Statutes.
4. The audit is to be conducted and the statements prepared in accordance with
GASB 34, and the audit shall include a review and evaluation of the City's
system of internal accounting controls.
5. The auditor shall submit, no later than fifteen (15) days after the end of field work,
a draft of the management letter, which shall identify weaknesses observed in
the system of internal accounting controls, assess their effect on the system and
propose steps to eliminate such weaknesses.
6. Working papers are the property of the auditor and should be held locally for a
period of five (5) years. Working papers will be available for examination or
duplication without charge to authorized City personnel as well as
representatives of the cognizant Federal Audit Agency, the General Accounting
Office, the State of Florida Auditor General or the State Board of Accountancy.
They will be made available for examination or duplication at a reasonable
charge to subsequent auditors engaged by the City.
7. The auditor will agree to immediately notify the City if the Board of Accountancy
or any other regulatory agency requests a review of the audit work papers
concerning the City or any government client audited by the firm's local office.
8. The City will expect immediate compliance with any expanded scope definitions
and will consider fee adjustment where significant change can be demonstrated
which will materially affect what the City should have expected the auditor to
accomplish at the time of fee determination.
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9. The Auditor will assist the City in complying with changes in reporting
requirements to remain in conformity with Generally Accepted Accounting
Principles. This may include technical assistance in preparation of new
statements and footnote disclosure.
10. If the City issues debt during the contract period for which the official statement
contains financial statements and the report of independent accounts, the firm
shall be required to issue a "consent and citation of expertise" as auditor and any
necessary "comfort letters" at a cost to be negotiated with the City.
c. Instructions for Proposals:
1. All firms submitting a proposal will need to submit one marked original and five
(5) sets of their documents in a sealed envelope. The left front of the package
shall read:
Request for Proposals to Provide Audit Services
RFP # 006/07/MG
Due Date: July 20,2007 - Time 5:00 PM
Company Name and Address
Documents will need to be delivered or hand-delivered to:
Attn: Purchasing Department
City of Winter Springs
1126 East S.R. 434
Winter Springs, FL 32708
2. Proposals must be received by the City not later than 5:00 p.m. on Friday,
July 20,2007, in order to be considered.
3. Proposals must be delivered in a sealed envelope or sealed box with the name of
the proposer and RFP # 006/07/MG Audit Services clearly marked on the
outside for easy identification. No facsimile or telegraphic proposal submissions
will be accepted.
4. Cost of the preparation and submittal of proposals is an operational cost of the
proposer, and the City of Winter Springs shall not be responsible for any such
costs incurred.
5. Questions regarding RFP # 006/07/MG Audit Services should be in writing and
emailed to mareco@wintersprinasfl.ora with the subject RFP # 006/07/MG
Audit Services - Questions before July 9, 2007 at 5:00 PM.
D. Information to be included in the Proposal:
1. Title Page - The proposer should identify the RFP number and subject, the name
of the firm, local address, telephone number, name and title of contact person,
and date of submission.
2. Table of Contents - Provide a clear identification of the material by section and
by page number.
3. Letter of Transmittal - Should be brief, and introductory in nature.
4. A statement setting forth the proposer's understanding of the work to be done, a
brief description of the audit procedures to be followed and major areas of
emphasis, and a tentative schedule for performing the key phases of the audit.
5. An express agreement to meet or exceed Performance Specifications listed in
Section B. List any exceptions taken to these specifications.
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6. Description and history of the firm, including whether the firm is local, regional or
national. Provide the number of employees corporate wide and number of
offices in the State of Florida, and the number of employees employed in the
State of Florida. Provide how long the corporation has been in its current form,
how long the corporation has been in existence in any form and, if necessary, the
changing corporate culture.
7. The location of the office from which the work is to be done, the number of
personnel in that office who would be assigned to the engagement and the
relevant prior governmental auditing experience, background and qualifications
of those assigned personnel. Firm-wide experience may be submitted in addition
to, but not in lieu of, the assigned office's or staff's experience.
8. An identification of the partners, managers and supervisors who will work on the
audit as well as be assigned to review or quality control functions, including staff
from other than the local office if necessary for the audit. Whether members of
the proposed audit team are employees of the firm or are contracted consultants
should be noted. Also indicate persons authorized to represent and commit the
firm, including business address and phone number.
Resumes for each managerial and supervisory person to be assigned to the
audit should be submitted and include the following information:
a) Formal education.
b) Supplemental education relative to governmental accounting and auditing.
c) Experience in public accounting in general.
d) Experience in private business or government.
e) Experience with governmental units.
f) Experience with preparation of GASB 34 statements.
g) Experience and expertise in auditing computer systems.
h) Membership in various national and state governmental accounting boards,
committees, or associations (past and present).
i) Professional recognition, such as Certified Public Accounting licenses,
certifications, awards, etc.
It is understood that managerial, supervisory and audit staff may be changed for
a variety of reasons. Replacements may be made at the discretion of the
proposer, provided there is no compromise in qualifications or experience and
replacements (new staff) are acceptable to the City.
9. A description of the office's experience in preparing GASB 34 financial
statements and in providing assistance in obtaining the Certificate of
Achievement. List those municipalities for whom you currently prepare or have
prepared a CAFR in accordance with GASB 34, and those who received the
Certificate of Achievement during your tenure as auditor.
10. A current listing of Florida municipalities for which the firm is providing or has
provided auditing services, the scope of such service, and the time periods of
such service. Please provide a contact person, address and phone number, as
these clients may be contacted for references. Please provide the total number
of awards that are serviced from this local office.
11. A description of the firm's approach to peer review and a copy of the most recent
peer review report. Indicate whether that peer review included a review of local
government client activities.
12. Describe the audit approach that the firm will use in providing the services
described in the performance specifications' section to include, but not limited to,
the number of hours of staff time at each level that will be devoted to each
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segment and the approach for gaming and documenting the auditor's
understanding of the government's internal controls.
13. Firm promotional material may also be included as supplemental information;
however, it will not be considered a substitute for the proposal.
14. Disclosure of any unresolved or pending regulatory disciplinary actions and/or
litigation including negative declaration if applicable.
15. Formal statement that your firm meets all appropriate guidelines for
independence.
16. Provide with your proposal and include a proposed fee schedule for the services
listed in Performance Specifications Section B above in a se"arate sealed
envelo"e that;s clearlv marked "Pro"osed Fee Schedule". The fee schedule
will not be opened nor will it be given consideration until all proposals have been
evaluated based on criteria described below in Section E. The fee proposed by
the highest ranked firm will be subject to negotiation and final acceptance and
approval by the City of Winter Springs.
E. Evaluation Procedure:
The City desires to award the contract to the most responsive and responsible
proposer that demonstrates the ability to provide the highest quality of service at the
best cost. To accomplish this goal, the city's criteria for selection shall include, but
not be limited to, the following:
Evaluation Criteria Points
1. The firm's specific municipal audit experience with 20
municipalities of comparable size.
2. Professional certification, education and experience of 20
personnel to be assigned to the audit.
3. Understanding of the scope of services to be provided as 10
demonstrated by the stated audit approach.
4. Responses of references. 5
5. Past, current and projected work assignments of assigned 10
audit staff.
6. History of performing quality audits as demonstrated by 5
recent peer review report.
7. Willingness to meet the City's timeline (fieldwork start date 15
in November, CAFR issuance by end of January).
8. Location within 50 miles of the City of Winter Springs. 5
9. Overall presentation of proposal and oral presentation. 10
.1QQ
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PLEASE NOTE THAT A FEE PROPOSAL IS TO BE INCLUDED IN A SEPARATE
SEALED ENVELOPE WITH THIS PROPOSAL.
F. Selection Process:
A three-member Auditor Selection Committee will consist of the City Manager (or his
designee), Finance Director and a City Commissioner. The Auditor Selection
Committee will evaluate and rank proposals based on a weighted score point
formula. The Committee will select a list of not less than five firms as finalists for oral
presentations and interviews. After oral presentations and interviews with each of
the five firms, the Committee will rank the finalists, open the fee schedule and
undertake fee negotiations with the top-ranking finalist. Should agreement not be
reached, negotiations will begin with the remaining firms in ranking order. The
Auditor Selection Committee will then present a recommendation to the City
Commission on August 27,2007.
G. Terms and Conditions:
1. All responses shall become the property of the City of Winter Springs.
2. Proposals shall be prepared simply, providing straightforward responses to
satisfy the requirements of this RFP.
3. Each firm shall examine all parts of this RFP and shall determine all matters
relating to the interpretation of such documents. Only those firms that have
received and responded to this RFP will be considered. Any changes to the RFP
will be addressed by addenda to all firms who have received this RFP.
4. A response to this RFP does not constitute a bid; therefore, the City retains their
right to contact any/all proposers after submittal in order to obtain supplemental
information and/or clarification.
5. All questions for clarification or additional information should be directed to the
Finance Director as noted in section CS. No other City Staff, Board members,
Commission members, or contracted consultants shall be contacted. Such
unauthorized contact shall be cause for disqualification.
6. The City reserves the right to accept or reject any and all submittals received, to
waive irregularities and technicalities, and to request re-submission or to re-
advertise for all or any part of the RFP. The City shall be the sole judge of the
proposal and the resulting negotiated agreement that is in the City's best interest,
and the City's decision shall be final.
7. The City reserves the right to approve or reject any subcontracting firms after
initial contract approval.
H. Reauest for Additional Information:
The proposer shall furnish such additional information as the City may reasonably
require. This includes information which indicates financial resources as well as
ability to provide and maintain the system and/or services. The City reserves the
right to make investigations of the qualifications of the proposer or any of its agents
as it deems appropriate.
I. Addendum and Amendment to Reauest for Proposals:
If it becomes necessary to revise or amend any part of this Request for Proposal, the
revision will be furnished by written Addendum to all prospective proposers who
received a Request for Proposal.
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J. Billinas and Payment:
Progress payments not to exceed 80% of the total annual fee will be made on receipt
of invoice from the proposer, in accordance with a mutually agreed schedule. Final
payment will be made upon receipt and acceptance of final audit reports, opinion
letters and management letter.
K. On-Site Inspections:
Proposers are welcome to inspect recent CAFRs and the current budget via the
City's website as noted in Section A3 or to make an on-site inspection of City
facilities in connection with preparing proposals, providing that arrangements are
made in advance with the Finance Director.
L. Non-Collusion:
By offering submission to the RFP, the proposer certifies the proposer has not
divulged to, discussed or compared his/her proposal with other proposers or parties
to this proposal whatsoever.
M. Public Entitv Crimes:
A person or affiliate who has been placed on the convicted vendor list following a
conviction for a public entity crime may not submit a bid on a contract to provide any
goods or services to a public entity, may not submit a bid on a contract with a public
entity for the construction or repair of a public building or public work, may not submit
bids on leases or real property to a public entity, may not be awarded or perform
work as a contractor, supplier, subcontractor or consultant under a contract with any
public entity, and may not transact business with any public entity in excess of the
threshold amount provided in Section 287.017, for CATEGORY TWO, for a period of
36 months from the date of being placed on the convicted vendor list.
N. Additional Information:
Requests for additional information should be made as per instructions in Section
C5.
NOTE: All prospective proposers are hereby cautioned not to contact any member
of the City of Winter Springs' Commission, or any other staff member except the
Finance Director, regarding this proposal. Such unauthorized contact shall be cause
for disqualification.
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PROPOSED TIME SCHEDULE FOR SELECTION OF AUDITORS
RFP's Mailed
Return Deadline for RFP's - (5:00 P.M.)
RFP's Submitted to Auditor Selection Committee
Preliminary Ranking to Determine Finalists
Schedule Oral Presentations
Oral Presentations of Firm Finalists
Final Ranking by Committee Complete
Contract Negotiations
Recommended Contract Presented to Commission
June 26, 2007
July 20, 2007
July 23, 2007
July 30,2007
July 31,2007
August 6, 2007
August6,2007
August 7,2007
August 25, 2007
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AFFIDAVIT OF NON-COLLUSION
AND OF NON-INTEREST OF CITY EMPLOYEES
Description of Contract:
AUDIT SERVICES FOR THE CITY OF WINTER
SPRINGS, FLORIDA
STATE:
COUNTY OF:
FLORIDA
SEMINOLE
Name of company responding
Name of authorized individual signing
being the first duly sworn, deposes and says that he/she is the respondent in the
above proposal, that the only person or persons interested in said proposal are
named therein; that no officer, employee or agent of the City of Winter Springs or of
any other party is interested in said request for proposal; and that affiant makes the
above proposal with no past or present collusion with any other person, firm or
corporation.
Company
Signature
Sworn and subscribed before me this
20 , in the State of Florida, County of
day of
Notary Public
My Commission Expires:
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CITY OF WINTER SPRINGS, FLORIDA
STATEMENT OF "NO PROPOSAL"
If you do not intend to respond to this Request for Proposal, please complete and
return this form prior to the date shown for receipt of proposals to:
Attn: Purchasing Department
City of Winter Springs
1126 East S.R. 434
Winter Springs, FL 32708
We, the undersigned, have declined to propose on RFP # 006/07/MG, audit services,
for the following reasons:
Date:
Signature:
Company Name:
Phone Number:
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